U.S. and Iran Near Deal to End War as Stock Markets Surge, Oil Prices Plunge
Markets rallied Wednesday after reports that the U.S. and Iran are nearing a deal to end their war and reopen the Strait of Hormuz, though President Trump cautioned it may be premature. Oil fell sharply and major stock indices hit record highs on the diplomatic progress.
Markets React to Iran Peace Talks
The price of oil plunged and stocks surged after a new report said the U.S. believed it was nearing a deal to end the war with Iran. The S&P 500 closed higher by 1.5% and the Nasdaq Composite jumped 2%, with both indexes closing at record highs. The Russell 2000 index also added 1.5%, and the Dow Jones Industrial Average traded up by more than 610 points.
Oil Market Impact
U.S. crude oil plunged by as much as 15%, to $88 per barrel, and international Brent crude oil fell as much as 11%, to $96 per barrel. U.S. crude oil closed down by 7%, at $95.08 per barrel, and Brent closed down 7.8%, at $101.27 per barrel.
Diplomatic Negotiations
Officials in Washington and Tehran were working on "a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations," Axios reported Wednesday morning, citing two U.S. officials and two additional sources. A spokesperson for Iran's Foreign Affairs Ministry told the Iranian news outlet ISNA that a U.S. proposal was under review and that Iran planned to convey its assessment of it to Pakistan, which is mediating.
Trump's Cautious Tone
The moves moderated slightly after Trump told the New York Post in an interview that it was "too soon" to prepare to sign a peace deal.